Location: Taos County, NM | Metro: Taos County, NM
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,270 | $449,235 | 0.28% | F |
| 3BR | $1,600 | $590,537 | 0.27% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 87571 (Taos, NM) on the axes of yield and stability reveals it to be a moderate-yield/moderate-stability market. This conclusion is driven by specific figures from the data provided.
On the yield axis, the Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $1,230, while the market rent stands at $1,010. The median home value is $435,698. These numbers indicate that rental yields are lower compared to the FMR, suggesting a moderate yield potential for landlords and investors. The discrepancy between the FMR and the actual market rent suggests that the market is somewhat stable, but not without competition, as the actual rents are below the federally recommended rate.
Moving to the stability axis, the percentage of renters is 29.6%, which is relatively low, indicating that homeownership is more prevalent in Taos. While this might seem to suggest instability, the average income level of $57,575 provides some assurance regarding the ability of residents to afford housing, whether through renting or purchasing. However, the lack of information on the number of days properties remain on the market (DOM) introduces an element of uncertainty regarding how quickly rental units can be filled or sold.
Given these specifics, ZIP 87571 is neither a high-yield/low-stability flip-style market nor a steady-cashflow zone. Instead, it occupies a middle ground where investors can expect reasonable returns but must also manage the risks associated with a slightly less stable rental environment. The key figures driving this assessment are the FMR of $1,230 versus the market rent of $1,010, and the income level of $57,575, which together suggest a balanced approach to investment in this area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.